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Following are the highlights of the second bi-monthly monetary policy announced by the RBI on Thursday:
* Repo rate reduced by 25 bps to 5.75 per cent for third time in a row
* Reverse repo rate now stands at 5.50 per cent, marginal standing facility (MSF) rate 6 per cent
* RBI changes policy stance to accommodative from neutral
* Cuts GDP growth forecast to 7 per cent from 7.2 per cent for FY20
* Raises retail inflation forecast for April-September to 3-3.1 per cent and 3.4-3.7 per cent in October-March
* Projects upward bias in food inflation in near term due to rising prices of food items
* Forecast risks to inflation trajectory from monsoon uncertainties, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario
* Waives RTGS and NEFT charges to promote digital transactions
* Sets up a panel to review ATM charges, fees levied by banks
* To issue draft guidelines for ‘on tap’ licensing of small finance banks by August
* Flags sharp slowdown in investments, moderation in private consumption growth as concern
* All six MPC members voted in favour of 0.25 per cent policy rate cut
* Average daily surplus liquidity in the system at ₹ 66,000 crore in early June
* Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019
* Next monetary policy statement on August 7.
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